Why KiOR's Shares Popped
Nov 8th 2012 5:37PM
Updated Nov 8th 2012 5:44PM
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of alternative fuel company KiOR (NAS: KIOR) jumped as much as 14% in early trading, after announcing earnings and a plant opening. Shares settled into a much smaller gain as the day moved along.
So what: KiOR reported exactly $0 in revenue, and a $27 million, or $0.26 per share, loss in the third quarter. But, never mind that; the company announced that its first commercial scale plant is up and running.
Now what: This is a speculative play on energy, at best, and we have no idea when or if KiOR will generate a sustainable profit. The plant opening is an important milestone, but I wouldn't be a buyer until I see profits coming from the company, and sustainable feedstock prices. KiOR has a better shot than most to make it in this market, but it just isn't worth the risk.
Interested in more info on KiOR? Add it to your watchlist by clicking here.
The article Why KiOR's Shares Popped originally appeared on Fool.com.Fool contributor Travis Hoium has no positions in the stocks mentioned above. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings, or follow his CAPS picks at TMFFlushDraw. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.